One area of copyright licensing I’ve found a lot of copyright reports get wrong is music licensing. Consider this quote from techdirt.com’s “Senator Wyden Introduces Bill To Bring Some Sanity To Webcasting Royalty Rates“:
We were just talking about how incredibly broken the system is for establishing webcasting rates, in part because the law itself explicitly says that the Copyright Royalty Board (CRB) Judges should look to prevent disruptive innovation and preserve “prevailing industry practices.” In practice this has meant that basic webcasting rates, established by CRB judges, are usually somewhat insane and impossibly out of touch with reality. It’s only gotten worse over time — and the last round ended up being so crazy that everyone basically agreed to ignore those rates and set their own. And while those rates were lower than what the judges wanted to set, they’re still ridiculously high, significantly limiting the amount of webcasting available today. Even the leaders in the field, like Pandora, admit that with current rates, it’s basically impossible for the company to ever make a profit.
You’d think that this statement covers all webcasting of all music; one just can’t set up their own broadcasting station and avoid paying for major label tracks.
techdirt.com’s reportage doesn’t explain organizations like Magnatune, a label which licenses all of their tracks to share, or Musopen which describes itself as “a non-profit dedicated to providing copyright free music content” (such as the Musopen lossless DVD). Every year there are more labels providing music in a variety of genres, all licensed to share in any medium.
The wealth of viable alternatives to major label tracks make me lose sympathy with those who want to become another corporate repeater station and complain about Copyright Royalty Board rates shutting them out. The time is now to establish something better that helps more artists struggling to be heard, artists who offer their work to you under amenable terms.
We know that this model works in the marketplace—Broadcast Music, Inc. (BMI) started in a comparable way, providing a repertoire of music for American radio stations to play under better terms than the competition from ASCAP, a competing royalty/licensing organization which had been around for 20 years. BMI undercut the competition from ASCAP at a time when ASCAP demanded “a fixed percentage of each station’s revenue, regardless of how much music the station played from ASCAP’s repertoire”.